Buying Our Dreams

The Financial Times runs some interesting commentary on the luxury goods market that has some bearing on the art market. Last week we linked to Christie’s prediction that the auction business had reached a bottom. Now luxury vendors are making predictions about the sector:

Bernard Arnault, chairman of Moët Hennessy Louis Vuitton (LVMH), the largest luxury goods group in the world, said, “the multiplication of products at low prices will have the effect of actually strengthening the demand for products of higher quality and higher prices. We don’t buy our dreams at the supermarket.”

The FT also quotes Diego Della Valle on his feeling that luxury market is picking up and the CEO of Jimmy Choo who points out his most expensive shoe is also one of his bestsellers:

Though both men were quick to note the sector would look very different in 2010, with a number of competing brands disappearing under the weight of their leverage and more demanding consumers, Mr Arnault added, “it would be wrong to say nothing will be like it used to be”. […]

Bain and Company, the consultants, has predicted the luxury market, which was worth €170bn ($236bn) in both 2007 and 2008, would contract 10 per cent in 2009 and rise 1 per cent in 2010.